Passage of this bill will have no fiscal impact on state funds. However, it is noted that this bill amends previous provisions of Senate Bill 266, 1996 General Session which established the Division of Fleet Operations. Expenses of the Division will be recovered through rates billed to user agencies. It is anticipated that these rates will be increased to represent a full cost charge back to the user agencies, which in turn may require additional appropriations to fund the new rates. For example, as UDOT and Public Safety go from direct appropriation to long term leases with the Division of Fleet Operations, an increase in current expense to these Departments may be required. Also, until the capital replacement fund is fully funded, borrowing from the General Fund could increase as currently provided by law. Conversely, findings of the Process Mapping study indicated that statewide savings could be achieved through operational efficiencies. However, the quantification of the fiscal impact cannot be done until the rates are established and the Division of Fleet Operations is fully implemented.

Office of the Legislative Fiscal Analyst

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